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Does on-premise AI make sense for SMEs?

Yes, for many SMEs on-premise AI makes sense, especially with strict data protection requirements, Swiss data sovereignty, or compliance obligations.

Compliance often decides

Regulated industries such as banks, law firms, fiduciaries, or medical practices are subject to rules (FINMA, Swiss DPA, GDPR, professional secrecy) that cloud solutions often fail to meet. If you work with mandate data, tax records, or health data, on-premise is frequently the only legally safe option: the data stays in-house and under Swiss law.

Data protection and sovereignty

On-premise means: your data never leaves the company. No sharing with third parties, no access by US cloud providers or foreign authorities, full control over access, backup, and deletion. For Swiss SMEs, data sovereignty comes on top: servers sit physically in Switzerland, Swiss law is the standard, and you are independent of the pricing and product decisions of global cloud providers.

Typical scenarios

A law firm with 2 to 25 lawyers needs on-premise for client confidentiality and professional secrecy. A fiduciary with 5 to 20 employees handles tax data and trade secrets, where on-premise is sensible to mandatory. For banks and public authorities under strict regulation, it is often the only option.

And the costs?

Beyond compliance, on-premise also pays off economically as soon as usage gets intensive. Concrete figures for your team come from the cost calculator, and the pricing model is explained in How much does it cost to run AI yourself?

Next steps

Contact us for individual advice


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